3.5.1 Maintain Branch-wise Forward Interest Rates

Branch level maintenance of forward interest rates is necessary for revaluing those contracts for which you have indicated that revaluation must be according to the Branch Rates.

Oracle Banking Treasury identifies those contracts, which are to be revalued according to the forward interest rates maintained at the branch level and creates records in the Revaluation Branch Interest Rate screen based on the revaluation date. Unlock each record and indicate appropriate interest rates for specific interest periods.

1. On Home screen, type DVDBRRAT in the text box, and click next arrow.

   The Derivatives Revaluation Branch Interest Dates screen is displayed.

   Figure 3-9 Derivatives Revaluation Branch Interest Dates

   
   Description of "Figure 3-9 Derivatives Revaluation Branch Interest Dates"
2. On the Derivatives Revaluation Branch Interest Dates screen, specify the fields.

   For more information on fields, refer to the below table.

   The advantage in maintaining branch-wise interest rates is when multiple contracts require the same rate(s) for processing revaluation, (the tenor and currency combination should be the same) the BOD function identifies all the required rates and inserts a single record into this screen.

   If you are maintaining details of a new interest rate for your branch, select New from the Actions menu in the Application tool-bar or click the new icon. The Branch Interest Rates Maintenance screen displays without any details.

   If a branch interest rate record is defined, choose the Summary option under Branch Rates. From the Summary screen, double-click a record to open.

   Table 3-8 Derivatives Revaluation Branch Interest Rates Field Description

   Field	Description
   Rate Code and Rate Source	If the details of a new interest rate for your branch are maintained, indicate the rate code that is to be associated with the interest rate. Identify a valid code from the list of rate codes available. Subsequently, indicate the source to which the rate code belongs. When you indicate the codes linked to the rate code, and source the description assigned to them will default in the adjacent fields.
   Revaluation Date	All those contracts, which must be revalued as per the interest rates maintained at the branch level, will be revalued as of the revaluation date. While maintaining details of a new interest rate, indicate the date based on which contracts is revalued.
   Interest Revision	The system revises interest rates automatically when the daily batch for derivatives is run using the Branch specific Interest rate revaluation method.
   Confirmation	Check this box to confirm that the correct interest rate is entered. Once you check this box, the current system date displays in the Date field. Note: If this box left unchecked, then this record will not be taken up for revaluation processing.
   Rate Details	Since the system identifies the currency and tenor of forwarding rates required for each revaluation date, on the Revaluation Date revaluation is considered to only those contracts with the particular Rate Code, Rate Source, and Currency combination.
   Currency Code	Choose the currency to maintain the Interest Rate. Once the Currency Code is selected, the description assigned to it displays in the adjacent field.
   Period Start and End Date	Specify the start and end dates for the interest rate you are defining.
   Interest Rate	Enter the interest rate for the particular rate code. The interest rate specified is meant for your branch and is used to determine the Fair Value of all those contracts for which you have indicated that branch-level interest rates are to be used for revaluation. Further, the revaluation is done for only those contracts with the particular Rate Code, Rate Source, and Currency combination for the particular Revaluation Date. Click the add button and enter the relevant details to define a new forward interest rate for a specific interest period. To delete an existing rate, highlight the rate and click on the delete button.